Case Study: The Protection of a Business' Intellectual Property

Private lists ranking top hot sauces also freely abound, though premium rankings and market information is available for purchase. For example, Thrillist.com’s top ten ranking features USA and Mexican brands: Cholula (Jalisco), Crystal (Louisiana), Franks Red Hot (Missouri), Huy Fong Chili Garlic (California), Tapatio (California), Tabasco Original (Louisiana), Texas Pete (North Carolina), Valentina Salsa Picante (Mexico). 10 While there appears to be unyielding demand for hot sauces, finding a reputable and well- positioned distributor can play a pivotal role in new market penetration and visibilty in that new market. Information on credible distributors can be found through paid food

importers and distributor’s databases, referrals, or business match-making facilitated by business support organisations.

Place Marie Sharp’s location in Belize provides the company with unique geographical advantages as Belize is pest and disease free for several menaces found in other countries; this affords steady production levels of high quality inputs to sauces. The Central American location also places Belize at a convenient transportation nexus in the heart of the Americas.11

Table 3 Pepper Varieties and Degree of Hotness

Scoville Units

Chile Varieties & Commercial Products

100,000 - 500,000 50,000 - 100,000 30,000 - 50,000 15,000 - 30,000 5,000 - 15,000

Habenero, Scotch Bonnet, South American Chinese, African Birdseye Santaka, Chiltepin, Rocoto, Chineses Kwangsi Piquin, Cayenne Long, Tabasco, Thai Prik Khee Nu, Pakistand Dundicut de Arbol; crushed red pepper; habanero hot sauce Early Jalapeno, Aj Amarillo, Serrano; Tabasco ® Sauce TAM Mild Jalapeno, Mirasol; Cayenne Large Red Thick; Louisiana hot Sauce Sandia, Cascabel, Yellow Wax Hot Ancho, Pasilla, Espanola Improved; Old Bay Seasoning NuMex Big Jim, NuMex 6-4, chili powder NuMex R-Naky, Mexi-Bell, Cherry; canned green chiles, Hungarian hot Paprika Pickled pepperoncini Mild Bells, Pimiento, Sweet Banana, U.S. paprika

2,500 - 5,000 1,500 - 2,500 1,000 - 1,500 500 - 1,000 100 - 500 10 - 100 0

Source: Caribbean Export Development Agency, 2004 11

Pricing A review of the pricing of Marie Sharp’s products and competing products on Amazon reveals how the product is positioned in the market:

Based on Table 4, Marie Sharp’s commands a comparatively high price online. However, it was clarified that distributors usually control the prices overseas and it is usually marketed in Asia, the USA and Europe as a gourmet, exotic product from the Mayan mountains and hence commands a higher price.

Table 4 Online Pricing of Hot Sauce Name

Price (US$)

Price/oz

3 pack Marie Sharp’s Hot Habanero 5 pack Cholula 4 pack SoCal hot sauce 4 pack Tabasco 4 pack Gringo Bandito 4 pack Texas Pete

$14.95 $23.89 $23.63 $15.69 $15.67 $17.25

$1.00/oz $0.96/oz $1.19/oz $0.79/oz $0.79/oz $0.72/oz

Comparisons based on multi-packs of the same product and not variety packs

10 Thrillist, 2013. “Power-ranking the 10 Best Hot Sauces on Earth.” Published August 2013 https://www.thrillist.com/eat/nation/power-ranking-the-10-best-hot-sauces-on-earth 11 WTO Trade Policy Review, Trade Policy by Sector - Belize 12 Final Report Market Research Caribbean Regional HRD Program for Economic Competiveness (CPEC)/ Caribbean Export Development Agency (CEDA) Hot Pepper Project Phase I Market Research on the Viability and Export Potential of the Regional Hot Pepper Industry, June 2003 Revised May 2004 Available at https://www.carib-export.com/login/wp- content/uploads/2009/08/Final%20 Document%20-HP.pd

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